CHF150 million for fast growing startups

The first subscription period for the growth fund was launched this September. With capital commitments of around CHF 150 million, interest in the fund has far exceeded expectations in less than three months. The official first closing date was originally set at 31 March 2019, with a target volume of CHF 100 million. So far, more than half of the capital commitments are from Swiss pension funds. Other major investor segments include banks, family offices and insurance companies.

The early closing of the first financing round means that the fund will soon be able to  commence its investment activities. The shortlist currently includes more than ten Swiss growth companies from the information and data services and health tech sectors.

Iwan Deplazes, Head of Asset Management for Swisscanto Invest by Zürcher Kantonalbank, commented: "We're delighted with the high level of interest in the growth fund. This shows that institutional investors are willing to commit risk capital where the right investment vehicles are available. At the same time, we're giving the Swiss start-up scene a boost."

The growth fund invests in unlisted growth companies in the expansion phase. The focus lies on companies with innovative technologies and business models in the areas of information and data services, health as well as the environment and energy. It is envisaged that around 70 to 80 percent of investments will be made within Switzerland. This makes the growth fund one of the first investment vehicles under the Swiss Collective Investment Schemes Act (CISA) to concentrate primarily on financing Swiss growth companies in the expansion phase. The direct financing activity ensures a cost-efficient structure. Another key advantage is the transparency in the disclosure of valuation, portfolio, costs and taxes.

The fund is aimed at institutional investors with a medium to long-term investment horizon and a suitability for illiquid investments. The target return is 10 to 12 percent p.a. (net, measured by the Internal Rate of Return, IRR). Interested, qualified investors have the opportunity to subscribe to new units during the second subscription period, scheduled to last until April/May 2019.

(Press release)

Picture: Fotolia / Wael Khalil